Large projects cost a lot. If you want to expand your building, buy equipment, or grow into a new market, you need a lot of cash. Most businesses don’t have enough money on hand to pay for everything upfront. The good news is that government financing and grants can help cover a big part of your project costs—sometimes even up to 100%—if you plan your funding carefully.
This guide explains how Canadian businesses use a mix of government loans, loan guarantees, and grants to pay for major projects without taking on too much risk.
When people hear the word “grants,” they often think of free money that you never have to pay back. For large projects, though, most businesses use a mix of funding tools:
Governments want to support strong projects, but they expect the business to be able to stand on its own. Public funding is there to reduce risk, help your cash flow, or fill a gap—not to pay for everything with no strings attached.
Each program and province has its own rules about what costs are covered and how much you can get.
Before you apply, check if you and your project meet the basic requirements. Most programs look for:
Some programs have extra rules, like needing a tourism licence or a minimum star rating for accommodations. Always read the guidelines carefully before you start your application.
Applying for government funding takes time and planning. Here’s a typical process:
Research programs
Find programs that fit your project, location, and industry. Using tools like GrantHub can help you sort through options quickly.
Check eligibility
Make sure you meet all the requirements. Some programs only accept certain types of businesses or projects.
Prepare your documents
You’ll usually need a business plan, project budget, and financial statements.
Apply before starting
Most programs won’t fund costs you’ve already paid for. Apply and get approval before you spend money.
Wait for approval
The review process can take weeks or months. Be ready to answer questions about your project.
Follow reporting rules
If you get funding, you may need to report on your progress and how you spent the money.
Here are three active Canadian programs that help businesses cover big project costs.
Program: Project Financing
Type: Repayable financing / loan guarantee
Covers: Up to 100% of project costs
Minimum: $50,000
Term: Up to 25 years
Features:
Eligible uses:
This program often forms the main part of a large project’s funding, with grants added for specific needs like training or innovation.
Organization: Finance PEI
Type: Repayable loan
Covers: Up to 80% of eligible project costs
For: Tourism businesses in PEI
Status: Open
Eligible projects:
Key rules:
Many businesses use this loan with smaller grants for things like marketing or energy upgrades.
Organization: Innovation PEI
Type: Grants and contributions
Focus: Productivity, competitiveness, and business growth
Supports may cover:
Eligibility:
This program helps with planning and setup costs but won’t pay for an entire expansion.
Most successful projects use more than one funding source. Here’s how many businesses do it:
Start with a large government loan or guarantee
Use a main loan (like Investissement Québec’s Project Financing) to cover most costs.
Add targeted grants
Apply for grants that cover special costs like training, technology, or marketing.
Use private capital for the rest
Once government support is in place, banks are often more willing to lend.
GrantHub’s matching tool can help you find programs that fit your project, province, and industry.
Thinking grants will pay for everything
Large projects almost always need loans. Grants usually pay for certain activities, not the whole project.
Applying after you start spending
Most programs want you to apply before you begin. Retroactive funding is rare.
Ignoring stacking limits
Some programs limit how much government funding you can get. If you go over, you could lose your funding.
Using the wrong program for the cost
A marketing grant won’t pay for construction. Match each cost to the right program.
Q: Can government financing really cover 100% of a project?
Sometimes, yes. Programs like Investissement Québec’s Project Financing can cover all eligible costs, but you must repay the loan or meet guarantee rules.
Q: Are government loans better than bank loans?
Government loans often have better terms, like longer repayment periods or payment breaks. This can help your cash flow during big projects.
Q: Can I combine several government programs?
Yes, as long as you follow stacking rules. Many businesses use one main loan and add smaller grants.
Q: Are repayable loans taxed like income?
No. Loans you must repay are not considered taxable income. Non-repayable grants may be.
Q: Do I need revenue to qualify for project financing?
Usually, yes. Most programs check if your business can repay the loan, especially for large projects.
GrantHub keeps track of hundreds of grants and financing programs across Canada to help you find the right fit for your business.
Major projects don’t have to stop because of cash flow problems. With the right mix of government financing and grants, you can lower your risk and keep control of your business. GrantHub can help you discover which programs work for your project, province, and growth stage—so you can focus on building, not searching for funding.
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